SUREKHA SINGLA vs. PR. COMMISSIONER OF INCOME TAX AND ORS

Facts

The petitioner, Surekha Singla, filed a writ petition challenging a notice dated 31.03.2021, issued under Section 148 of the Income Tax Act, 1961, for an assessment year not explicitly stated. The notice was dispatched to the petitioner on or after 01.04.2021. The respondents are the Principal Commissioner of Income Tax and others. The petitioner's counsel was represented by Mr. Abhishek Sharma, and the revenue was represented by Ms. Urvashi Dhugga. The High Court of Punjab & Haryana at Chandigarh heard the matter.

Held

The High Court noted that the learned counsel for the revenue conceded that the impugned notice dated 31.03.2021, dispatched to the petitioner on or after 01.04.2021, for the assessment year in question, under Section 148 of the Income Tax Act, 1961, should be treated as a notice under Section 148A(b) of the Act, following the Supreme Court's decision in Union of India & Ors. Vs. Ashish Agarwal (2023) 1 SCC 617. This concession satisfied the learned senior counsel for the petitioner. Consequently, the petition was disposed of with a direction to the respondent-revenue to proceed from the stage of the notice, in terms of the procedure laid down under Section 148A(b) of the Act. The petitioner was granted liberty to raise all possible pleas and defenses available to them during these proceedings. No issue was expressly left undecided.

Key Issues

1. Whether a notice issued under Section 148 of the Income Tax Act, 1961, dated 31.03.2021 and dispatched on or after 01.04.2021, for the assessment year in question, should be treated as a notice under Section 148A(b) of the Act, in light of the Supreme Court's decision in Union of India & Ors. Vs. Ashish Agarwal (2023) 1 SCC 617? Assessee's Contention: The petitioner's counsel was satisfied with the revenue's concession. Revenue's Contention: The learned counsel for the revenue conceded that in terms of the law laid down by the Supreme Court in Union of India & Ors. Vs. Ashish Agarwal (2023) 1 SCC 617, the impugned notice dated 31.03.2021, dispatched to the petitioner on or after 01.04.2021, for the assessment year in question, under Section 148 of the Income Tax Act, 1961, be treated as notice under Section 148A(b) of the Act.